Resolve Debt

Let’s face it, finance wise – 2009 has been a pretty bad year for many of us. A large number of people have fallen into debt and are struggling to get out. So…let’s start afresh next year, let’s put all the bad times behind us and make 2010 a money-saving, debt-free year.

Here is a little step-by-step guide to help you do just that…

Step one: Create a new budget

Your first step towards financial stability should be creating a budget. To do this, simply write down everything you earn and spend each month. This will give you a good idea of where your money is coming from, and where your money is going.

Creating a budget can help you save money and become debt free. This is because you can highlight areas in which you are wasting your money, so you can change your spending habits and save money – then used this ‘saved’ money to overpay your debts, meaning you can become debt free sooner.

For example, if you are spending $20 a month on a gym membership and $40 a month on cable TV, why not cancel both of these, and use that extra $60 a month to overpay your unsecured debts?

You can do your exercising at home (or run round the block/your local park), and instead of watching cable TV, why not take up a new, but free, hobby?

Step two: Stick to your budget

Ok, so creating your budget is the easy part…now comes the hard part – sticking to your budget.

We can all sit down and write out our own monthly budget, but how many of us can actually stick to it? You’d be surprised how many people can’t!

The easiest way to stick to your budget is to learn a little self control. If you can stop yourself from buying things you don’t need/haven’t planned to buy, then you should be fine.

It may take a while to get used to living with a new way of spending, but it will be worth it and you will save yourself so much money – and should be able to clear your debts at a faster rate than before.